SF2688

Purpose of the Bill

This bill aims to update and impose new surcharges on various types of electric and hybrid vehicles in Minnesota. The goal is to ensure these vehicles contribute equitably to road maintenance and infrastructure funding, which traditionally relies on gasoline tax revenues.

Main Provisions

• All-Electric Vehicles: The surcharge for all-electric vehicles is increased from $75 to $200. This surcharge is on top of any existing vehicle taxes.

• Plug-in Hybrid Electric Vehicles: A new surcharge of $100 is introduced for plug-in hybrid electric vehicles, which will complement existing taxes on these vehicles.

• Electric Motorcycles: A new $40 surcharge is set for all-electric motorcycles, added to any existing vehicle taxes.

• Plug-in Hybrid Electric Motorcycles: Introduces a $20 surcharge for plug-in hybrid electric motorcycles, added to current taxes.

Significant Changes to Law

• Regular Surcharge Adjustments: All introduced surcharges, including the adjusted all-electric vehicle fee, will be recalculated annually by the commissioner based on changes in the gasoline excise tax rate. These adjustments ensure that surcharge rates align with inflation or changes in fuel tax rates.

• Definitions Update: The bill provides clear definitions for all-electric motorcycles and plug-in hybrid electric motorcycles. These definitions distinguish between the types of power sources used by the motorcycles.

• Revenue Allocation: Revenue from these surcharges will be allocated to the highway user tax distribution fund, supporting transportation infrastructure improvement.

Relevant Terms

• Electric vehicles
• Plug-in hybrid vehicles
• Electric motorcycles
• Surcharge
• Gasoline excise tax
• Highway user tax distribution fund